StockFetcher Forums · General Discussion · @ Four - "Let your profits Run"<< >>Post Follow-up
karennma
6,831 posts
msg #124490
Ignore karennma
7/23/2015 11:44:04 AM

Look at AMBA ...
When would you get out?
How do you know when the profits "have run".
That cliche' has always had a dubious meaning to me.


karennma
6,831 posts
msg #124491
Ignore karennma
7/23/2015 11:47:21 AM

Suppose AMBA doesn't break $129 or go above $130?
If I'm letting my profits "run", how would I know ahead of time -- when the "run" is over.


BarTune1
406 posts
msg #124492
Ignore BarTune1
7/23/2015 3:37:48 PM

Karen,

Why do you not have a defined exit strategy? I know it has been said before in these forums: your exit strategy is just as important as your entry strategy. Without one, it is very difficult to ever be a successful trader.

I never have to think about my exits!

karennma
6,831 posts
msg #124497
Ignore karennma
7/23/2015 6:54:07 PM

@ BarTune - I do have an exit strategy. I guess you didn't read the comments about exiting positions on the Intraday thread.
But that's okay. I realize, you can't read everything, much less, remember everything people post.
Anyway, "Four" will know what I'm talking about. "Letting your profits run" was the continuation of a comment he'd made regarding a video he posted.
I just didn't post the follow-up in Intraday Alerts because, it had become a "discussion" .. so, I put it here.
:>)

karennma
6,831 posts
msg #124498
Ignore karennma
7/23/2015 7:14:15 PM

BTW, BarTune,
Your question proves my point.
Anyone doing short-term trading should have an exit strategy, IMHO.
"Letting your profits run" is just just fraught with uncertainty.
"Run"?? to where? Where's the end of the rainbow?
Reminds me of a webinar I attended at the beginning of the summer. The host was showing charts and said, "now here are examples of "letting your profits run". (E-Z to do w/ 20/20 hindsight.) Ridiculous! (shaking my head)
:>/

BarTune1
406 posts
msg #124499
Ignore BarTune1
7/23/2015 9:41:44 PM

Sorry ... I must have missed your comments on the exit methodology. I've been too busy to keep up on all the threads. However, I know there were some detailed discussions on the topic a few years back. My exit(s) have always been based on reversion to the mean strategies. I've always had trouble with exits on momentum plays that you would let run. Trendsurfer used to use the previous day's low as a stop. However, the few times I used that I seemed to get stopped out all too often which seems to validate Larry Connors research that stops hurt performance.

four
4,005 posts
msg #124502
Ignore four
modified
7/23/2015 11:48:29 PM

https://www.youtube.com/watch?v=LiE1VgWdcQM

"One good trend pays for them all"

https://www.youtube.com/watch?v=Vyaq4WxjFG8


Toad
20 posts
msg #124508
Ignore Toad
7/24/2015 8:20:29 AM

@BarTune1

A system I am currently testing out myself is a "let the profits run" type system. What I have in place for it at the moment is to set my initial SL 1% below an obvious support level when I buy in. Once the uptrend begins (simply one up day for my system) I move my SL to 1% below the low of the day. This seems to allow adequate breathing room for a short term (~1 week) uptrend. From looking back on this technique, at least for the strategy I am using, most stocks have a day or two with relatively low range before they turn back so I am only missing out on about 2-3% potential profit, and if the stock crashes during the uptrend I can still bank some profit/avoid loss.

So basically, maybe try setting the SL 0.5% or 1% below the low to allow some room on the way up.

four
4,005 posts
msg #124564
Ignore four
7/31/2015 8:38:15 AM

http://www.marketwatch.com/story/why-99-of-trading-is-pointless-john-bogle-2015-07-30/print

another thought on trading . . .

StockFetcher Forums · General Discussion · @ Four - "Let your profits Run"<< >>Post Follow-up

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